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Here's What Key Metrics Tell Us About Salesforce.com (CRM) Q1 Earnings
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For the quarter ended April 2024, Salesforce.com (CRM - Free Report) reported revenue of $9.13 billion, up 10.7% over the same period last year. EPS came in at $2.44, compared to $1.69 in the year-ago quarter.
The reported revenue represents a surprise of -0.07% over the Zacks Consensus Estimate of $9.14 billion. With the consensus EPS estimate being $2.38, the EPS surprise was +2.52%.
While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance.
Since these metrics play a crucial role in driving the top- and bottom-line numbers, comparing them with the year-ago numbers and what analysts estimated about them helps investors better project a stock's price performance.
Here is how Salesforce.com performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:
Remaining performance obligation (RPO) - Current: $26.4 billion versus the five-analyst average estimate of $26.78 billion.
Remaining performance obligation (RPO) - Total: $53.9 billion versus $54.14 billion estimated by four analysts on average.
Remaining performance obligation (RPO) - Noncurrent: $27.5 billion versus $27.35 billion estimated by four analysts on average.
Geographic Revenue- Europe: $2.15 billion versus $1.97 billion estimated by two analysts on average. Compared to the year-ago quarter, this number represents a +9.9% change.
Geographic Revenue- Americas: $6.06 billion versus the two-analyst average estimate of $6.22 billion. The reported number represents a year-over-year change of +10.6%.
Geographic Revenue- Asia Pacific: $926 million compared to the $904.13 million average estimate based on two analysts. The reported number represents a change of +13.8% year over year.
Revenue- Subscription and support: $8.59 billion versus the 12-analyst average estimate of $8.56 billion. The reported number represents a year-over-year change of +12.3%.
Revenue- Professional services and other: $548 million compared to the $575.05 million average estimate based on 12 analysts. The reported number represents a change of -9.4% year over year.
Revenue- Subscription and support- Marketing and Commerce: $1.28 billion compared to the $1.27 billion average estimate based on three analysts. The reported number represents a change of +9.6% year over year.
Revenue- Subscription and support- Platform and Other: $1.72 billion compared to the $1.75 billion average estimate based on three analysts. The reported number represents a change of +9.6% year over year.
Revenue- Subscription and support- Integration and Analytics: $1.41 billion versus the three-analyst average estimate of $1.34 billion. The reported number represents a year-over-year change of +24.2%.
Revenue- Subscription and support- Sales: $2 billion versus $2 billion estimated by three analysts on average. Compared to the year-ago quarter, this number represents a +10.4% change.
Shares of Salesforce.com have returned +0.3% over the past month versus the Zacks S&P 500 composite's +4.3% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term.
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Here's What Key Metrics Tell Us About Salesforce.com (CRM) Q1 Earnings
For the quarter ended April 2024, Salesforce.com (CRM - Free Report) reported revenue of $9.13 billion, up 10.7% over the same period last year. EPS came in at $2.44, compared to $1.69 in the year-ago quarter.
The reported revenue represents a surprise of -0.07% over the Zacks Consensus Estimate of $9.14 billion. With the consensus EPS estimate being $2.38, the EPS surprise was +2.52%.
While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance.
Since these metrics play a crucial role in driving the top- and bottom-line numbers, comparing them with the year-ago numbers and what analysts estimated about them helps investors better project a stock's price performance.
Here is how Salesforce.com performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:
- Remaining performance obligation (RPO) - Current: $26.4 billion versus the five-analyst average estimate of $26.78 billion.
- Remaining performance obligation (RPO) - Total: $53.9 billion versus $54.14 billion estimated by four analysts on average.
- Remaining performance obligation (RPO) - Noncurrent: $27.5 billion versus $27.35 billion estimated by four analysts on average.
- Geographic Revenue- Europe: $2.15 billion versus $1.97 billion estimated by two analysts on average. Compared to the year-ago quarter, this number represents a +9.9% change.
- Geographic Revenue- Americas: $6.06 billion versus the two-analyst average estimate of $6.22 billion. The reported number represents a year-over-year change of +10.6%.
- Geographic Revenue- Asia Pacific: $926 million compared to the $904.13 million average estimate based on two analysts. The reported number represents a change of +13.8% year over year.
- Revenue- Subscription and support: $8.59 billion versus the 12-analyst average estimate of $8.56 billion. The reported number represents a year-over-year change of +12.3%.
- Revenue- Professional services and other: $548 million compared to the $575.05 million average estimate based on 12 analysts. The reported number represents a change of -9.4% year over year.
- Revenue- Subscription and support- Marketing and Commerce: $1.28 billion compared to the $1.27 billion average estimate based on three analysts. The reported number represents a change of +9.6% year over year.
- Revenue- Subscription and support- Platform and Other: $1.72 billion compared to the $1.75 billion average estimate based on three analysts. The reported number represents a change of +9.6% year over year.
- Revenue- Subscription and support- Integration and Analytics: $1.41 billion versus the three-analyst average estimate of $1.34 billion. The reported number represents a year-over-year change of +24.2%.
- Revenue- Subscription and support- Sales: $2 billion versus $2 billion estimated by three analysts on average. Compared to the year-ago quarter, this number represents a +10.4% change.
View all Key Company Metrics for Salesforce.com here>>>Shares of Salesforce.com have returned +0.3% over the past month versus the Zacks S&P 500 composite's +4.3% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term.